Beyond buyer agent and buyer advocate
Your Melbourne property investment adviser
The Federal Government’s proposed change to concessional taxing of superannuation contributions by high income earners flies in the face of the long-standing message out of Canberra to all workers that they must self-fund their own retirement.
This is a responsibility that most people take very seriously. More tax on super, regardless of who it affects, reduces the incentive to be self-sufficient and ultimately will see more people rely on the public purse in retirement, including some current high earners.
This decision is a poor strategic move on the government’s part and a clumsy way to get the budget back to a modest surplus.
Furthermore, in our view, this initial targeting of the highest income earners is just the beginning. It is only a matter of time before this penalty is extended to those on more moderate incomes.